Enormous potential for growth - Bangladesh High Commissioner

By Lalin Fernandopulle

Sri Lanka and Bangladesh should explore opportunities in the ICT, construction and ship-building sectors in which Bangladesh has made great strides, said Bangladesh High Commissioner to Sri Lanka, Sufiur Rahman.

He was speaking at a bilateral trade seminar between Sri Lanka and Bangladesh organised by the National Chamber of Commerce of Sri Lanka recently.

Rahman said that there is enormous potential for growth in trade and investment between the two countries which are emerging economies in the region.

“Sri Lanka has ample resources and Bangladesh has the manpower which should be complemented to boost economic growth in both countries,” he said.

Bangladesh has a large workforce and it is a leading exporter of garments in the region. Ship building is a major foreign exchange earner. It was revealed that Lanka's exports to Bangladesh have increased by around 150% during 2006-2011. Imports from Bangladesh have increased by 100% in 2011 compared to 2010. Bilateral trade between the two countries rose to $ 22 million which is a 83% increase from 2007.

Sri Lanka ‘s main exports to Bangladesh are cotton, mineral fuel, mineral oils and products, bituminous substances, rubber and rubber products, enzymes, miscellaneous chemical products, special woven fabrics and textile fabrics. Sri Lanka imports from Bangladesh woven garments, pharmaceuticals, jute yarn and twine, knitwear, textile fabrics, sacks and bags, plastic goods, cotton yarn, iron chains, leather, engineering products and furnace oil.

Meanwhile, Central Bank data revealed that exports have been on the decline and continued this year as well with earnings in January plummeting by 18.2 percent Year-on-Year (YoY) to $ 726.7 million, Central Bank data revealed.

Export revenue has been dropping despite the trade deficit narrowing 24 percent YoY to $ 780.4 million.

Earnings from all major export categories dipped during the month. The decline was mainly driven by earnings from industrial exports that dipped 20.7 percent YoY to $ 557.7 million.

Textile and garment export earnings dropped 8.9 percent YoY to $ 333.9 million while rubber export earnings declined 19.8 percent to $ 62.8 million.

Earnings from agriculture products exports fell 18.2 percent YoY to $ 726.7 million with tea export earnings declining 7.9 percent YoY to US $ 167 million, data revealed.

As demand for exports remained fettered by the slow recovery of major export destinations, the EU and the USA , the decline in export earnings continued into 2013,” the Central Bank stated. Exporters attribute the decline in exports primarily to the lack of clear policy direction. The financial turmoil in Europe and the crisis in the Middle East have a major impact on the decline in exports.